Yahoo: “Don’t ‘screw up’ Tumblr” #3

#5: Create Ads specific to Tumblr content. Yahoo’s Ad strategy should center on Ads that are “native” to Tumblr’s blog content, with placements that flow with other posts without disrupting the user-experience plus make messages relevant to the readers of particular Blogs. For example, a car manufacturer could place GIF images of fans converting one of its cars into a racer and place them on Blogs followed by racing fans. If one can successfully target native ads to this active User group, Yahoo can grow a business in which Tumblr provides Ad-agency support for firms that want to develop Tumblr-appropriate ads for younger users. Yahoo can offer Tumblr experience in pushing Ads, but Tumblr can use its knowledge of its users to do a better job of crafting that advertising experience.

#6: Create content, not just Ads. Yahoo-Tumblr’s ad strategy should focus on its “premium” Blogs — the best ones that drive the largest part of the site’s traffic and that likely attract viewers who will tolerate sophisiticated promotional messages in exchange for the reliable entertainment or useful information. Google’s YouTube suffered initially from a flood of “amateurish: home videos only to see its content quality steadily improve over the years, in part through YouTube’s investment in original content & support for video producers. Yahoo-Tumblr should consider a similar strategy in investing in original content. A lot of its Blogs aren’t getting much traffic. The trick here is that they have to figure out a way to attract and (make money from) their best Bloggers. Ask them: “What can we do to work together to make it a co-enterprise?

#7: Communicate how this will work. “Rather than deliberately distancing itself from Tumblr to try to preserve Tumblr’s hip quotient, Yahoo CEO Mayer should communicate clearly how Yahoo & Tumblr may & may not work together in selling ads”, says Renee Miller, founder of integrated advertising and marketing firm Miller Group in Los Angeles. “There’s a big disconnect between Tumblr & Yahoo,” she says. “Explain to Clients what’s in it for them. In other words, give me a reason to buy. At this point, I don’t see any benefits. They’re going to have to provide them to survive & thrive”.

(Comment on what you think of this deal (ie, what has to be done to make it work))